REG-Bioventix Plc: Interim Results <Origin Href="QuoteRef">BVXP.L</Origin>
27/03/2017 07:07
Bioventix plc
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2016
Bioventix plc (BVXP) (“Bioventix” or “the Company”), a UK company
specialising in the development and commercial supply of high-affinity
monoclonal antibodies for applications in clinical diagnostics, announces its
unaudited interim financial results for the six-month period ending 31
December 2016.
HIGHLIGHTS
* Turnover:
+ 32% to £3.12M (H2 2015: £2.37M)
* Profit before tax:
+49% to £2.48M (H2 2015: £1.67M)
* Profit after tax:
+41% to £1.98M
(H2 2015:£1.40M)
* Cash at 31 Dec:
+0.54M to
£5.15M (2015: £4.61M)
* Interim dividend per share: +21% to 20p (March 2016: 16.5p)
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
We are pleased to report the interim results for the half-year ended 31
December 2016. Revenues for the half-year period of £3.12M (H2
2015:£2.37M) were up 32% and profits before tax of £2.48M (H2 2015 £1.67M)
were up 49% for the comparable period in the previous year.
Revenue growth compared to the comparable half year has come from our vitamin
D antibody (vitD3.5H10) in the form of increased physical antibody sales and
royalties. The roll out of our customer’s vitamin D assay products has
advanced further towards completion.
As mentioned in our last report in October 2016, Bioventix revenues arriving
in global currencies converted at post-Brexit referendum exchange rates give
an uplift in reported sterling revenues of 15-20% as no hedging mechanisms are
employed. The 2015/16 annual accounts featured such an effect for 1H.2016
compared to 1H.2015 and a similar effect accounts for some of the growth in
the reporting period – 2H.2016 compared to 2H.2015.
Shipments to China have continued at a high frequency with the majority of
antibodies being used for R&D purposes. Whilst revenues from China remain
modest, we remain optimistic that our antibodies are proving to be
successful.
Cash flows remained strong and our cash balance increased significantly to
£5.15M at 31 December 2016 (2015: £4.61M).
Future developments
We reported in October on the progress of our troponin partner Siemens
Healthcare Diagnostics and a high sensitivity troponin test which features a
Bioventix-created antibody. Whilst the exact timing of a Siemens product
launch is confidential Siemens information and will be dependent on their
discussions with global regulatory authorities, the Board expects to hear news
later in 2017 relating to their ex-US activities. Significant troponin
revenues during the financial year 2017/2018 are expected to offset the loss
of revenues of around £800,000 from another product due to the expiry of the
relevant agreement.
Dividend Policy
The Board continues to follow a progressive dividend policy that embraces
continuity. For the current half-year, the Board is pleased to announce a
first interim dividend of 20p which represents a 21% increase on the previous
half-year.
The shares will be marked ex dividend on 6th April and the dividend will be
paid on 21st April to shareholders on the register at close of business on 7th
April.
Conclusion
We are delighted to be able to report such positive news for the current
half-year. We are pleased with the continued success of our vitamin D
antibody and remain optimistic about our troponin project and the success of
Siemens as their product launches around the world.
For further information please contact:
Bioventix plc Peter Harrison Chief Executive Officer Tel: 01252 728 001
finnCap Ltd Geoff Nash/Simon Hicks Stephen Norcross Corporate Finance Corporate Broking Tel: 020 7220 0500
About Bioventix plc:
Bioventix (www.bioventix.com) specialises in the development and commercial
supply of high-affinity monoclonal antibodies with a primary focus on their
application in clinical diagnostics, such as in automated immunoassays used in
blood testing. The antibodies created at Bioventix are generated in sheep and
are of particular benefit where the target is present at low concentration and
where conventional monoclonal or polyclonal antibodies have failed to produce
a suitable reagent. Bioventix currently offers a portfolio of antibodies to
customers for both commercial use and R&D purposes, for the diagnosis or
monitoring of a broad range of conditions, including heart disease, cancer,
fertility, thyroid function and drug abuse. Bioventix currently supplies
antibody products and services to the majority of multinational clinical
diagnostics companies. Bioventix is based in Farnham, UK and its shares are
traded on AIM under the symbol BVXP.
The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No.
596/2014.
BIOVENTIX PLC
STATEMENT OF COMPREHENSIVE INCOME
for the six month period ended 31 December 2016
Six months ended 31 Dec Six months ended 31 Dec 2015
2016
£ £
TURNOVER 3,124,841 2,370,841
Cost of sales (217,820) (259,132)
GROSS PROFIT 2,907,021 2,111,709
Administrative expenses (445,919) (444,912)
OPERATING PROFIT 2,461,102 1,666,797
Interest receivable 23,117 3,393
Interest payable (253) (2,083)
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 2,483,966 1,668,107
Tax on profit on ordinary activities (504,822) (270,281)
PROFIT FOR THE FINANCIAL PERIOD 1,979,144 1,397,826
Earnings per share for the period:
Basic 39.01p 27.67p
Diluted 38.67p 27.20p
BIOVENTIX PLC
BALANCE SHEET
as at 31 December 2016
31 Dec 2016 31 Dec 2015
£ £
FIXED ASSETS
Intangible fixed assets 0 0
Tangible fixed assets 458,377 470,541
Investments 195,560 411
653,937 470,952
CURRENT ASSETS
Stocks 233,650 181,597
Debtors 2,612,288 2,013,504
Cash at bank and in hand 5,148,037 4,611,800
7,993,975 6,806,901
CREDITORS : amounts falling due within one year (631,703) (343,063)
NET CURRENT ASSETS 7,362,272 6,463,838
TOTAL ASSETS LESS CURRENT LIABILITIES 8,016,209 6,934,790
PROVISIONS FOR LIABILITIES
Deferred Tax 17,078 17,897
NET ASSETS 7,999,131 6,916,893
CAPITAL AND RESERVES
Called up share capital 254,933 252,546
Share premium account 224,942 78,426
Capital redemption reserve 1,231 1,231
Profit and loss account 7,518,025 6,584,690
SHAREHOLDERS' FUNDS 7,999,131 6,916,893
BIOVENTIX PLC
STATEMENT OF CASH FLOWS
for the six month period ended 31 December 2016
31 Dec 2016 31 Dec 2015
£ £
CASHFLOW FROM OPERATING ACTIVITIES
Cash flows from operating activities Profit for the financial year 2,461,102 1,666,797
Amortisation of intangible assets - -
Depreciation of tangible fixed assets 18,215 18,396
Taxation (414,747) (187,917)
Increase / (increase) in stocks (34,718) 11,373
Decrease in debtors 68,200 72,866
(Decrease) in creditors (4,164) (35,045)
Share option charge 9,094 25,944
Net cash generated from operating activities 2,102,982 1,572,414
Purchase of tangible fixed assets (9,505) (1,545)
Purchase of listed and other investments (152,230) 0
Interest received 23,117 3,393
Net cash from investing activities (138,618) 1,848
Cash flows from financing activities
Issue of ordinary shares 2,387 0
Movement on share premium account 146,516 0
Dividends paid (2,345,382) (1,091,001)
Interest paid (253) (2,083)
Net cash used in financing activities (2,196,732) (1,093,084)
Cash and cash equivalents at the beginning of the year 5,380,405 4,130,622
Cash and cash equivalents at the end of the year 5,148,037 4,611,800
Cash and cash equivalents at the end of the year comprise:
Cash at bank and in hand 5,148,037 4,611,800
BIOVENTIX PLC
Notes to the financial information
1. While the interim financial information has been prepared using the
company’s accounting policies and in accordance with Financial Reporting
Standard 102 (FRS 102), the announcement does not itself contain sufficient
information to comply with FRS 102.
2. This interim financial statement has not been audited or reviewed by
the auditors.
3. The accounting policies which were used in the preparation of this
interim financial information were as follows:
3.1 Basis of preparation of financial statements
The financial statements have been prepared under the
historical cost convention and in accordance with applicable accounting
standards.
3.2 Turnover
Turnover is recognised for product supplied or services
rendered to the extent that it is probable that the economic benefits will
flow to the Company and the turnover can be reliably measured. Turnover is
measured as the fair value of the consideration received or receivable,
excluding discounts, rebates, value added tax and other sales taxes. The
following criteria determine when turnover will be recognised:
3.2.1 Direct sales
Direct sales are recognized at the date of dispatch.
3.2.2 R&D income
Subcontract R&D income is recognised based upon the
stage of completion at the year-end.
3.2.3 Licence revenue
Annual licence revenue is recognised, in full, based
upon the date of the invoice, and royalties are accrued over the period to
which they relate
3.3 Intangible fixed assets and amortization
Goodwill is the difference between amounts paid on the
acquisition of a business and the fair value of the identifiable assets and
liabilities. It is amortised to the Profit and loss account over its estimated
economic life.
Amortisation is provided at the following rates:
Goodwill - Over 10 years
Know how - Over 10 years
3.4 Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is not charged on freehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold property - 2% straight line
Plant and equipment - 25% reducing balance
Motor Vehicles - 25% straight line
Equipment - 25% straight line
3.5 Valuation of investments
Investments in unlisted Company shares, whose market
value can be reliably determined, are remeasured to market value at each
balance sheet date. Gains and losses on remeasurement are recognised in the
Profit and loss account for the period. Where market value cannot be reliably
determined, such investments are stated at historic cost less impairment.
3.6 Stocks
Stocks are stated at the lower of cost and net realisable
value, being the estimated selling price less costs to complete and sell. Cost
includes all direct costs and an appropriate proportion of fixed and variable
overheads.
At each balance sheet date, stocks are assessed for
impairment. If stock is impaired, the carrying amount is reduced to its
selling price less costs to complete and sell. The impairment loss is
recognised immediately in profit or loss.
3.7 Debtors
Short term debtors are measured at transaction price,
less any impairment. Loans receivable are measured initially at fair value,
net of transaction costs, and are measured subsequently at amortised cost
using the effective interest method, less any impairment.
3.8 Cash and cash equivalents
Cash is represented by cash in hand and deposits with
financial institutions repayable without penalty on notice of not more than 24
hours. Cash equivalents are highly liquid investments that mature in no more
than three months from the date of acquisition and that are readily
convertible to known amounts of cash with insignificant risk of change in
value.
In the Statement of cash flows, cash and cash equivalents
are shown net of bank overdrafts that are repayable on demand and form an
integral part of the Company's cash management.
3.9 Financial instruments
The Company only enters into basic financial instruments
transactions that result in the recognition of financial assets and
liabilities like trade and other accounts receivable and payable, loans from
banks and other third parties, loans to related parties and investments in
non-puttable ordinary shares.
3.10 Creditors
Short term creditors are measured at the transaction
price. Other financial liabilities, including bank loans, are measured
initially at fair value, net of transaction costs, and are measured
subsequently at amortised cost using the effective interest method.
3.11 Foreign currency translation
3.11.1 Functional and presentation currency
The Company's functional and
presentational currency is GBP.
3.11.2 Transactions and balances
Foreign currency transactions are translated into the
functional currency using the spot exchange rates at the dates of the
transactions.
At each period end foreign currency monetary items are
translated using the closing rate. Non-monetary items measured at historical
cost are translated using the exchange rate at the date of the transaction and
non-monetary items measured at fair value are measured using the exchange rate
when fair value was determined.
3.12 Finance costs
Finance costs are charged to the Profit and loss account
over the term of the debt using the effective interest method so that the
amount charged is at a constant rate on the carrying amount. Issue costs are
initially recognised as a reduction in the proceeds of the associated capital
instrument.
3.13 Dividends
Equity dividends are recognised when they become legally payable. Interim
equity dividends are recognised when paid. Final equity dividends are
recognised when approved by the shareholders at an annual general meeting.
Dividends on shares recognised as liabilities are recognised as expenses and
classified within interest payable.
3.14 Employee benefits-share-based compensation
The company operates an equity-settled, share-based
compensation plan. The fair value of the employee services received in
exchange for the grant of the options is recognised as an expense over the
vesting period. The total amount to be expensed over the vesting period is
determined by reference to the fair value of the options granted. At each
balance sheet date, the company will revise its estimates of the number of
options are expected to be exercisable. It will recognise the impact of the
revision of original estimates, if any, in the profit and loss account, with a
corresponding adjustment to equity. The proceeds received net of any directly
attributable transaction costs are credited to share capital (nominal value)
and share premium when the options are exercised.
3.15 Pensions
Defined contribution pension plan
The Company operates a defined contribution plan for its
employees. A defined contribution plan is a pension plan under which the
Company pays fixed contributions into a separate entity. Once the
contributions have been paid the Company has no further payments obligations.
3.16 Interest income
Interest income is recognised in the Profit and loss
account using the effective interest method.
3.17 Provisions for liabilities
Provisions are made where an event has taken place that
gives the Company a legal or constructive obligation that probably requires
settlement by a transfer of economic benefit, and a reliable estimate can be
made of the amount of the obligation.
When payments are eventually made, they are charged to
the provision carried in the Balance sheet.
3.18 Current and deferred taxation
The tax expense for the year comprises current and
deferred tax. Tax is recognised in the Profit and loss account, except that a
change attributable to an item of income and expense recognised as other
comprehensive income or to an item recognised directly in equity is also
recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis
of tax rates and laws that have been enacted or substantively enacted by the
balance sheet date in the countries where the Company operates and generates
income.
Deferred tax balances are recognised in respect of all
timing differences that have originated but not reversed by the Balance sheet
date, except that:
· The recognition of deferred tax assets is limited to the extent
that it is probable that they will be recovered against the reversal of
deferred tax liabilities or other future taxable profits; and
· Any deferred tax balances are reversed if and when all conditions
for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences
except in respect of business combinations, when deferred tax is recognised on
the differences between the fair values of assets acquired and the future tax
deductions available for them and the differences between the fair values of
liabilities acquired and the amount that will be assessed for tax. Deferred
tax is determined using tax rates and laws that have been enacted or
substantively enacted by the balance sheet date.
3.19 Research and development
Research and development expenditure is written off in the year in which it is
incurred.
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